CEILING RATE Meaning and
Definition
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Ceiling rate refers to the maximum allowable interest rate that can be charged on a loan or the upper limit on the prices of certain goods or services set by the government or a regulatory authority.
In the context of loans, a ceiling rate is a legal or regulatory limit imposed on the interest rate that a lender can charge on a loan. It is designed to protect consumers from excessive interest charges and prevent predatory lending practices. Lenders are prohibited from charging interest rates above the ceiling rate, ensuring affordability and protecting borrowers from exorbitant interest costs.
Another usage of ceiling rate pertains to price controls. In some cases, governments set a maximum price that can be charged for specific products or services to prevent inflation or protect consumers. This maximum price, referred to as the ceiling rate, acts as an upper limit beyond which prices cannot legally exceed.
Ceiling rates play a crucial role in ensuring fairness and preventing exploitation in various sectors of the economy. By capping interest rates on loans or setting maximum prices on goods and services, they create an environment that promotes affordability and discourages price gouging. The specific ceiling rates may vary depending on the country, sector, or economic conditions, and are often subject to periodic review and adjustment by the relevant authorities.
Common Misspellings for CEILING RATE
- xeiling rate
- veiling rate
- feiling rate
- deiling rate
- cwiling rate
- csiling rate
- cdiling rate
- criling rate
- c4iling rate
- c3iling rate
- ceuling rate
- cejling rate
- cekling rate
- ceoling rate
- ce9ling rate
- ce8ling rate
- ceiking rate
- ceiping rate
- ceioing rate
- ceilung rate
Etymology of CEILING RATE
The word "ceiling rate" has a relatively straightforward etymology. The term is composed of two words: "ceiling" and "rate".
- Ceiling: The word "ceiling" is derived from the Middle English word "ceil", which meant "to cover or to panel". It ultimately has its origins in the Latin "caelum", meaning "sky" or "heaven". Over time, the meaning of "ceiling" evolved to refer to the upper interior surface of a room or the top limit of something.
- Rate: The word "rate" comes from the Middle English word "rāt", derived from the Old French word "rate", meaning "price, tax, or payment". It can be traced back to the Latin word "rata", which means "fixed amount" or "proportion".
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